Holiday firm collapses despite excellent marketing strategy

Just watched news report here in the UK, about a travel firm that has collapsed leaving 900 families out of pocket. The news reporter described their marketing strategy as 'selling holidays (vacations), at a very low price, sometimes lower than they had paid for them'.

Oh how I wish I had been in that launch meeting......

Marketing Exec: "Boss, we are going to take the market by storm, selling holidays for £100 each"Boss: "What are we paying for them"Finance: "about £120"Boss: "Great, lets do it"

Ahh let us sigh and marvel at the ultimate power of group-think, leading a collection of otherwise sane business people to make decisions that individually they never would have committed to.

Still the 'where did we go wrong' wrap up meeting shouldn't take too long.

I'm a kiwi and we are 14000 miles away from everyone (and we don't consider Australia in that equation (for numerous reasons) ) so we don't always get the news right DownUnder.My Questions Are:Was this the travel company that was owned by the partners of the Government MPs, set up several years ago to handle all the government staff travel deals?

And

Weren't they relying on the 30% government subsidy to counter the effect of Buying @ 120 - Selling @ 100?

And

It seems that the NZ vacations that they marketed here were also negotiated (accommodation-wise) not on a twin-share basis but on a six per room basis to ensure that their tours only required a maximum of 7 rooms per coach. This allowed hotels to be flexible and also let their less desirable rooms, which of course meant that could prune their tarrifs. My questions: Does this mean that the massage and callgirl services here (who also seemed to fit right into the 6 per room basis) and were charged discreetly under McDs Not-So-Big-Macs; does it mean that those services are now at risk as well?And... Do you know if they had maintained their insurance coverage for Unplanned Pregnancies, Maternity Leave and Baby Sitting.. for the affected girls here?

Yep you might be right about Australians mate... They do ALWAYS rise for the bait But mind you... Didn't you loose games in the FIFA W/C?And isn't there an expectation to gain a similar result in the Rugby W/C?

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